Rents to rise 7.5% over next three years predicts Countrywide

Rents are likely to rise 2.5 per cent in 2019, then 3.0 per cent in 2020 and a further 2.0 per cent in 2021 according to Countrywide.

In a prediction report issued by the agency group’s upmarket brand Hamptons International, rents are expected to rise over the next three years roughly in line with average earnings - which is sharper than rent rises over recent years.

Countrywide says weaker economic conditions across the UK, affordability problems for buyers and stringent lending conditions mean demand for the rented sector will continue to grow. 

“The reduction in tax reliefs available to landlords will continue to weigh on landlord purchases and is causing some of the most indebted landlords to sell up” warns Countrywide. 

“In fact, since the three per cent stamp duty surcharge was introduced in April 2016, 120,000 more landlords have sold their buy to lets than purchased new properties and this is contributing to low stock levels in the rental market. Furthermore, a rising interest rate environment may mean that more landlords will review their portfolios” continues the agency.

However, it says that despite low stock levels and increasing demand, rental growth has been sluggish throughout 2018. 

Last month the rent on a newly let property rose 1.1 per cent year-on-year and just 0.1 per cent year-on-year in London. 

https://www.lettingagenttoday.co.uk/breaking-news/2018/12/rents-rising-strongly-over-next-three-years-predicts-countrywide

Confiscation orders on landlords could set precedent for private rental sector

A local authority claims that a court decision may set a legal precedent for other councils across the UK using the Proceeds of Crime Act.

The follows a Crown Court judge’s order to a family of landlords who crammed 31 tenants into one property to pay thousands of pounds in fines, costs and confiscation orders.

Mother and daughter Harsha and Chandni Shah, along with Harsha Shah's brother Sanjay Shah, were pocketing around £112,000 a year by housing 31 people in a four-bedroom house in Wembley.

They were assisted by Jaydipkumar Valand, who was acting as their agent and collecting rent from the tenants.

Enforcement officers from Brent council also found a woman living in a lean-to shed in the back garden of the property during a raid on the premises in July 2016. 

The shack had no lighting or heating and was made out of wood offcuts, pallets and tarpaulin.

Her Honour Judge Wood of Harrow Crown Court made a Confiscation Order for the sum of £116,000 against Harsha Shah and Chandni Shah under the Proceeds of Crime Act 2002. Valand was also subjected to a confiscation order for the sum of £5,000.

Harsha Shah, Chadni Shah and Sanjay Shah were sentenced to pay £41,000 in fines. All the defendants were ordered to pay £82,367 in costs. The total payable amounted to £244,367.

A confiscation order was not awarded against Sanjay Shah because the court was not persuaded that he had benefitted from his criminal activity in running the illegal, overcrowded HMO. 

However, the judge held that that he had played a key role in facilitating the illegal operation and fined him along with the other defendants.

A Brent council spokeswoman says: "We will use every legal power we have to come down hard on landlords and agents who exploit tenants in Brent. Every house in multiple occupation needs a licence, which helps to create decent living standards in the borough. We will track down landlords who do not licence their properties and rip off tenants by housing them in miserable conditions."

During the raid in 2016, enforcement officers found some residents sharing a single bed with night workers swapping sleeping shifts with those who worked during the day. Four beds were discovered piled into the front room and three in each bedroom.  

Previous case law had indicated that confiscation orders could not be obtained in cases such as this. But Brent says councils from all over the country are now using Brent's historic legal win as a precedent.

https://www.lettingagenttoday.co.uk/breaking-news/2018/12/proceeds-of-crime-case-may-set-legal-precedent-for-private-rental-sector

Bill giving tenants the right to sue is on verge of becoming law

A Private Members’ Bill which will allow private rental sector tenants to sue over the conditions of their properties is just a few days away from completing its passage through Parliament.

The Homes (Fitness for Human Habitation) Bill passed its committee stage in the House of Lords earlier this week and on Wednesday of next week, December 19, it goes to its Third Reading in the Lords.

This is regarded as a ‘tidying up’ stage before the Bill is sent back to the House of Commons for MPs to consider any amendments added by Peers; it will then get Royal Assent early next year.

The Bill seeks to amend the Landlord and Tenant Act 1985, and the Building Act 1984.

When it becomes law it will mean that all landlords in the social and private sectors must ensure that their property is fit for human habitation at the beginning of the tenancy and throughout and, where this is not done, the tenant will have the right to take legal action for breach of contract on the grounds that the property is unfit for human habitation.

ARLA supports the measure and says: “It will give renters greater protection against criminal operators, is a step in the right direction for the market, and as Karen Buck MP said, we look forward to working with her to achieve better enforcement against those who bring the sector into disrepute.”

In addition the Residential Landlords Association and National Association of Landlords both back the Bill. 

The Bill extends to England and Wales but will only apply to tenancies in England. The Welsh Government has already included similar provisions in relation to housing fitness in the Renting Homes (Wales) Act 2016.

https://www.lettingagenttoday.co.uk/breaking-news/2018/12/bill-allowing-tenants-to-sue-over-property-conditions-on-verge-of-becoming-law

Massive fraud committed by three London letting agents

Three letting agents who failed to return tenants’ deposits or pass on rent payments to landlords have been convicted of fraud by a jury after a five-week trial.

The men, who ran companies in Islington and neighbouring London boroughs using the trading name Crestons, were convicted of carrying on business for a fraudulent purpose, leaving at least 19 victims around £105,000 out of pocket.

During the trial Blackfriars Crown Court heard testimony from more than 30 witnesses. 

Between 2014 and 2016, the men failed to refund deposits to private tenants at the end of their tenancies, failed to pass on rent to landlords, and failed to put tenants’ deposits in an approved protection scheme.

The investigation was triggered by complaints from tenants and landlords who had fallen victim to Crestons. The convictions follow an investigation by Islington Trading Standards and other departments of the council.

A local authority spokesman says: “This is a major victory for the council, on behalf of private tenants and landlords not just in Islington and London but across the country – sending the message loud and clear that rogue letting agencies cannot rip off their clients and get away with it.

“This business trading as Crestons, using various company names, alone would have dealt with a huge number of tenants in Islington and neighbouring boroughs and I am extremely proud of our Trading Standards team, who worked so hard gathering evidence and witness testimony to build a strong case and secure these convictions.

“Prosecutions like this are rare but vital in the fight for better standards in the private housing market. We won’t stop here.”

The council is now pursuing confiscation orders against the three men, to claw back as much money as possible for the victims.

The men will be sentenced next month.

https://www.lettingagenttoday.co.uk/breaking-news/2018/12/three-london-agents-convicted-of-massive-fraud

Closed shops 'could be a boom for the private rental sector'

A new survey suggests that the demise of the High Street for shopping could lead to a surge in the supply of residential property to let.

The study by MRI Software, released this morning, says 66 per cent of property industry professionals believe redundant shops could be the largest available source for new homes, particularly suitable for flats to let.

Some 72 per cent of those surveyed see residential redevelopment of sites previously used by retailers giving the high street a new lease of life. 

The research - commissioned by MRI Software and entitled Charting UK Property Trends - suggests the vast majority of property investors, owners and developers believe that funding would be available for redevelopment or conversion of defunct shops, notwithstanding the political and economic uncertainty surrounding Brexit.

“The research shows we will see a far greater number of people living in town centres, which will give a boost to [remaining] retailers on the High Street while feeding other businesses such as gyms and entertainment venues” explains Dermot Briody, executive managing director for Europe at MRI Software. 

The survey took the responses of 144 senior property experts from a range of organisations, including investors/owners/developers, consultants, contractors, property managers, sales and lettings agents, service providers, and business occupiers.

“The vast majority were bullish on the outlook for the sector … Even where Brexit is concerned, the positive outweighed the negative, as two-thirds maintain that even a Hard Brexit won’t hurt their ability to get funding for property development” says Briody.

The skew towards newly-developed or newly-converted residential units on High Street is accentuated by other elements of the research.

These show that 82 per cent of the property professionals responding say Generation Rent – young adults unable to purchase a home due to high housing prices – is here to stay, with little likelihood buying conditions will improve.

The same proportion say that tenants are renting for longer, thus driving demand for higher quality properties, and an even greater proportion believe the rental sector will become more important to the overall UK residential market over the next 18 months.

Aside from residential considerations, just over four out of five respondents say co-working and shared office space operators such as WeWork are likely to be users of former retail premises in UK town and city centres.

https://www.lettingagenttoday.co.uk/breaking-news/2018/12/closed-shops-could-be-a-boom-for-the-private-rental-sector

Big rise in rental deposit numbers according to leading provider

Deposit protection provider The Dispute Service says it has seen a big rise in the number of deposits it protects in the last financial year.

A statement from TDS says that in the 12 months to the end of March this year there was a 6.8 per cent rise on average across the UK, with Northern Ireland in particular seeing a 13.85 per cent surge. 

TDS operates tenancy deposit protection schemes in England, Wales, Scotland and Northern Ireland. 

Sister company, SafeDeposits Scotland followed suit, generating an 8.0 per cent rise in the number of tenancy deposits protected. In England and Wales, The Dispute Service trades as Tenancy Deposit Scheme grew 6.52 per cent over the year.

In total, the number of tenancy deposits protected by the not-for-profit organisation grew from 1,386,572 in March 2017 to 1,481,485 in March 2018 across the UK.

Steve Harriott, group CEO of The Dispute Service, says: “The growth we have experienced is due to both the increasing size of the private rented sector and the quality of the service we provide to our customers..

“Over the last year, we’ve invested significantly in our people, products and customer service. We’re consistently meeting government targets for call and email answering times across the UK, and were awarded the Customer Service Excellence accreditation earlier this year.

“There’s a lot of interest in the private rented sector and particularly in tenancy deposit protection. The sector continues to grow but there is very little in the way of published data on tenancy deposit protection.”

https://www.lettingagenttoday.co.uk/breaking-news/2018/12/big-rise-in-rental-deposits-according-to-leading-provider

Politicians again hurting our industry, say agents and landlords

Agents and landlords have united against what is being seen as the latest attack on the private rental sector by the government.

In May the government said it would cap deposits at six weeks rent but yesterday it reneged on the agreement saying it would be five weeks for annual rentals of under £50,000 and six weeks for above.

The industry is furious.

David Cox, chief executive of ARLA Propertymark, says: “Once again politicians are attacking the industry for their own purposes. Tenancy deposits have worked perfectly well for over a decade, and there is no basis in research that these amendments are necessary. This move will do nothing but push the most vulnerable in our society away from professional landlords and agents, and into the hands of rogue landlords and agents who will exploit them.”

David Smith, policy director at the Residential Landlords Association - which had already voiced its disapproval about the idea when it was suggested last weekend- now says: “In doing a complete about turn on this, it is unfortunately vulnerable and elderly tenants who will suffer, just as ministers stated when they initially approved a six week cap. Those who will now find it more difficult to secure a home to rent will include those on benefits and those who have a pet as a companion.”

He continues: “In May, Ministers argued that a cap of six weeks offered a balance between affordability benefits and financial risk to landlords and providing confidence for them to rent to higher risk tenants. They considered that a five week cap did not offer that protection. Nothing appears to have changed since.”

And Jon Notley, chief executive of the Zero Deposit scheme, adds: "It is not sensible to impose a cap that - after a single month’s rent - leaves landlords with very little protection. The objective in terms of improving tenant affordability is both clear and necessary but there are already services on the market that offer the same protection as a traditional six-week deposit for the landlord at the cost of just one week's rent to the tenant. The rental market needs reform, but not in areas where solutions already exist to address its problems.”

The only support for the initiative appears to be from an online lettings agency.

James Davis, founder of Upad, says: “The industry may well respond negatively to this afternoon’s announcement and suggest that landlords will simply increase rents to compensate for what they lose in deposits, but this is somewhat short-sighted as in all reality, it’s not going to change things that much.

Yesterday’s U-turn came in the form of an amendment to the Tenant Fees Bill.

Other amendments to the Bill include protecting tenants from fees by limiting the type of default fees that can be charged by landlords and property agents.

This change means that during the tenancy landlords and agents will only be able to charge fees to replace lost keys or for late rent. Landlords will still be able to claim back costs for damage through the tenancy deposit at the end of the tenancy.

https://www.lettingagenttoday.co.uk/breaking-news/2018/12/politicians-again-hurting-our-industry-say-agents-and-landlords

Revealed: where to find the highest buy to let rental yields

Research released this morning reveals that university cities offer some of the highest buy to let yields in the country.

The Free Credit Report company surveyed over 580,000 properties across England, Scotland, and Wales to rank postcodes by their buy to let yields. 

The research showed locations with a high student population — like Nottingham, Liverpool, Manchester, Leeds, and the North East — boast some of the UK’s highest rental yields.

Nottingham has two postcodes featuring in the top five. NG1 takes first place with an average rental yield of 11.99 per cent and NG7 takes fifth place with an average yield of 8.89 per cent.

Property prices in Nottingham are also affordable, averaging £152,631 and £160,269 respectively — far below the UK average of £226,906. It has a student population of over 37,000.

Liverpool takes second place, with two postcodes in the top five, and five postcodes in the top 20. It has an approximate student population of 70,000, as well as three universities, which is thought to contribute highly to its strong yields.

Postcode L7 takes second place and has average rental yields of 9.79 per cent. L1 also performs well, taking fifth place, with average yields of 9.33 per cent.

Newcastle’s NE6 takes sixth place, with an average rental yield of 8.43 per cent. Property prices here are far below the UK average at £118,789, with Newcastle and Northumbria universities approximately 30 minutes away on public transport.

Similarly, Newcastle’s NE1 has yields of 8.16 per cent, and is within walking distance to both universities. Property prices, however, are slightly higher at £161,035, but are still below the UK average

London, by contrast, struggles. 

North London in particular was a poor performer, with five postcodes in the bottom 10. Highgate in N6 was the worst postcode in the capital and third from bottom overall, with paltry yields of just 1.93 per cent.

E6 in East Ham offers the best London yields at 4.81 per cent with Stratford (E15), Plaistow (E13), Poplar (E14), and Chingford (E4) all ranking in the London top 10.

The research has been commissioned by TotallyMoney, whose head of brand and marketing communications, Mark Moloney, says: “Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them.”

https://www.lettingagenttoday.co.uk/breaking-news/2018/11/revealed-where-to-find-the-highest-buy-to-let-rental-yields

Agency in ‘viewing charges’ controversy has had protests in the past

Letting Agent Today can reveal that the agency at the centre of the scandal over alleged charges for viewings has been the focus of controversy in the recent past.

Flintons is a single office agency based in London. Its website describes itself as “the London and international residential property specialist offering a full range of related services that help our clients buy, sell, let, rent and manage their homes and investments.”

Yesterday it hit the headlines when it was accused by the BBC’s Victoria Derbyshire programme of effectively charging prospective tenants hundreds of pounds to even view properties. 

Flintons itself denies the accusation that it charged for viewings - its response is published in full below. 

However, LAT has now discovered that in September the agency was the focus of a protest against its wider approach to fees.

Anonymous posters on Twitter circulated a call asking people to protest outside the agency’s office in September.

LAT has invited Flintons to put its side of the protest story but has not received a response on that specific point.  

Meanwhile there has been widespread condemnation by industry figures of Flintons for allegedly charging potential tenants hundreds of pounds for just viewing a property. 

Former RICS residential chairman Jeremy Leaf said on Twitter that the revelation made by the BBC“highlights the need to tighten rule further - and as soon as possible.”

Victoria Whitlock, a buy to let landlord and the Evening Standard’s columnist known as The Accidental Landlord, tweeted that the matter was simply “indefensible.”

Industry trainer and consultant Mike Day, who runs Integra Property Services, also took to social media to ask: “A new low for the lettings industry?”

The Victoria Derbyshire programme claimed yesterday that Israel Kujore and his friend Harry responded to one of Flintons' adverts.

“He said they had gone to see an agent who had told them they needed to pay a deposit to see a room but that the money would be refundable … They had paid £300 each to see a property, but Israel soon realised something was wrong” said a BBC report.

The BBC also quoted Labour’s housing spokeswoman Melanie Onn calling for the government to give greater protection to renters.

"Letting agents as well as landlords should be properly regulated" she said. "Of the 8,000 letting agents we've got around the country, only about half of those are voluntarily signed up to a code that means that they will operate to the highest professional standards. That means that half of them are not.”

However, Flintons continues to deny the allegations in full.

Flintons told Letting Agent Today: “We deny any allegation that prospective clients are asked to pay a holding deposit to be able to have a viewing. A holding deposit is only taken where a prospective client wishes to exclusively reserve a property for themselves and the property is then taken off the market and not offered to any other person.

“Whilst we have been informed of 3 instances where prospective clients had raised complaints, we provided suitable responses and believe that we demonstrated that the version of events that the complainants had provided were not entirely accurate and there was clear knowledge that any deposit taken was non-refundable. As the BBC have confirmed, all had signed holding deposit forms clearly stating that the deposit was non-refundable as it states at the beginning of the document and is clearly visible and is not something that can be missed or overlooked. It is not accepted that they were given the form after payment had been taken nor was there any assurance that the holding deposits were refundable. 

“We note that the BBC also undertook an undercover investigation where they used undercover reporters to look into our practices. They have confirmed that their undercover reporters were clearly told that any deposit would be non–refundable prior to any funds being requested when they showed an interest in a property. This we say clearly supports our position. 

“We confirm that we are an agency that assists numerous clients and the complaints raised only form a very small percentage of people who have engaged with us and the vast majority of our clients are happy with the service that we provide. Notwithstanding our position, we have reviewed our procedures and have provided further training to staff and have also now amended our holding deposit form to further highlight that the deposit is non-refundable if a prospective client changes their mind." 

https://www.lettingagenttoday.co.uk/breaking-news/2018/11/lettings-agency-in-viewing-charges-scandal-has-a-history-of-controversy

OnTheMarket reveals London area where tenants spend most on rent

OnTheMarket, which is beginning to undertake occasional property research, has released data identifying what proportion of tenants’ salaries are spent on rent in London.

Based on renting a one-bedroom property, Camden is the borough where tenants are spending the highest percentage of their salary on rent - 61 per cent.

For a two-bedroom home in Camden the proportion is 46 per cent and for a three bed it’s 51 per cent. A four-bedder comes in at 60 per cent.

The portal emphasises that this data does not show Camden as the most expensive London borough to rent a property - just where the highest percentage of typical salary is spent on rent.

Kingston upon Thames is where tenants spend the lowest percentage of their salary on rent across the capital. 

When renting a one bed property in Kingston, the percentage spent on rent is 25 per cent; for a two bed it’s 17 per cent while a three bed is 15 per cent and a four bed just 14 per cent.

“While it’s no surprise that cost remains the most likely primary factor when considering a new home, our analysis shows some stark variations across each borough of salary percentages being spent on rent” says OTM spokesperson Vikki Bennett.

“While London rents remain high across the board, considering all available options, such as moving to a nearby borough just a few miles away, can prove to have significant cost savings” she adds.

"Hampstead, within the borough of Camden, is likely to be of high significance as to why Camden comes out with the highest percentage, due to the exceptionally high rental prices within this particular area.”

https://www.lettingagenttoday.co.uk/breaking-news/2018/11/onthemarket-reveals-london-location-where-tenants-spend-most-on-rent

Work-from-home havens:new live-work houses in Ashford with fast train links to St Pancras — and Brussels

Home-based working is Britain’s fastest-growing employment sector.

Housebuilders are coming up with fresh design solutions to meet the demand, including work zones, attic spaces and purpose-built garden offices with fast-fibre technology, foldaway furniture and storage systems with sliding walls.

Finberry is a new 1,180-home development with a primary school being built by the River Stour on the outskirts of Ashford, Kent. 

Alongside cottages and detached houses are three-storey live-work homes with a self-contained ground-floor “work” area and separate entrance. 

The homes have 1,687sq ft of space, a rear garden and access to shops and a community hall.

“The properties would suit a range of businesses, from small architectural practices and accountancy firms to artists’ studios and wedding planners,” says Annette Cole, director of developer Crest Nicholson.

Financial pitfalls at Finberry live-work homes include mortgage restrictions and capital gains tax liabilities. 

Owners will be given formal status by the local authority, and will be asked to pay business rates of £1,561 a year on the ground-floor space as well as council tax on the purely residential element.

Prices start at £385,000. Call 01233 223 133.

Ashford is a boom location for startups, with 90 per cent of businesses deemed to be “micro” concerns employing up to nine people, many relocating from London. 

Fast train links are a big draw for business and commuters: 35 minutes to St Pancras and barely an hour to Brussels.

https://www.homesandproperty.co.uk/property-news/buying/new-homes/new-livework-houses-in-ashford-with-fast-train-links-to-st-pancras-and-brussels-a125411.html

Warning - landlords will quit as rent stagnation squeezes profits

More landlords will leave the private rented sector in the next year as annual rental price growth has been flat or falling since 2016 according to a property management firm. 

DJ Alexander, one of the UK’s largest family run property management companies, says that over the last year the average private rental price has increased by a mere 0.9 per cent across Britain - meaning that in many regions it was even less.

In England annual rental price growth has been below 2.0 per cent since May 2017 and below 1.0 per cent in the last four months - that’s down two thirds on six years ago. 

In Scotland annual rental price growth was last above 2.0 per cent in June 2015 and has fallen steadily, even going into negative territory four times since then. 

Wales has performed slightly better although has never enjoyed 2.0 per cent annual rental price growth and has now dipped to 0.7 per cent.

Over a five-year period, London has seen annual rent rates fall from 3.3 per cent in October 2013 to a fall of 0.2 per cent in October this year.

Other areas have performed better - the East Midlands has seen annual price rises increase from 0.8 per cent to 2.7 per cent over the same period, while the West Midlands, Yorkshire and Humber, the East of England and the South West have all experienced quite substantial increases in their annual rental price percentages.

“These figures highlight the tightening private rented market where margins are being squeezed and the casual landlord will be feeling the pinch. Many areas have almost static or barely rising annual price increases which, coupled with recent legislative changes which make it more expensive to be a landlord means that many will be pushed towards exiting the market” says David Alexander, managing director of DJ Alexander Ltd.

“The tax changes introduced by George Osborne continue to reduce the offsets which make running a property more expensive while Chancellor Hammond has reduced capital gains tax on selling rented property which makes the exit from the market more expensive” he continues.

“With the number of negatives increasing some landlords, many of whom only accidentally entered the market in the first place, may decide that now is the time to leave. Although there probably won’t be many tears shed for private sector landlords leaving the market, they play an essential part in providing vital housing stock across the UK.”

https://www.lettingagenttoday.co.uk/breaking-news/2018/11/warning--landlords-will-quit-as-rent-stagnation-squeezes-profits

Crooked letting agent admits taking over £220,000 from clients

A former lettings agent in Plymouth has finally admitted taking hundreds of thousands of pounds from tenants and landlords - the total is thought to be between £220,000 and £260,000. 

Last month we reported that Heather Crabb, who owned Plymouth-based Drake Homes from 2005 until it closed in September 2016, had admitted a charge of false accounting, two charges of fraud by abuse of position and two counts of theft. She also admits a separate fraud charge of stealing from landlords and tenants between March 2015 and December 2017.

Now Plymouth Crown Court has heard that Crabb and co-defendant Jill Wood - a co-owner of the agency - changed their pleas after originally denying a string of theft and fraud offences.

Judge Robert Linford released the pair on bail until a date to be fixed later this month.

This court appearance is merely the latest in a series of events in the saga of Crabb’s arrest and conviction. 

Two years ago she issued a statement saying her office in Plymouth had closed following her suffering a stroke. It read: “Due to continued ill health, we are informing you that the portfolio of Drake Homes is being transferred to a reputable agent who will look after your interests. We are in the process of completing your final accounts accordingly and the new agent, who is well established and very experienced will be in touch in due course. Kind regards. Heather.”

https://www.lettingagenttoday.co.uk/breaking-news/2018/11/crooked-letting-agent-admits-taking-over-220-000-from-clients

Fit for a sheikh — and his entourage:25-bedroom London super-mansion could be the capital's first £300 million home

A billionaire Arab sheikh is turning former offices near Hyde Park into a family palace that could be London’s first £300 million home.

Former Qatar prime minister Hamad bin Jassim bin Jaber Al Thani is believed to have paid about £150 million for the Grade II listed property and is spending a similar amount converting it into a vast and opulent super-mansion in the heart of Belgravia. 

Drawings submitted with a planning application show the finished six-storey house, set back from the road in an acre of land, will have more than 50,000 sq ft of living space, making it one of the largest private homes in London. The Standard has learned that the sheikh, known as HBJ, bought the Georgian property in 2016 from the Barclay brothers, Sir Frederick and Sir David, owners of the Daily Telegraph. 

The deal involved the transfer of two shares in a British Virgin Islands registered company to the sheikh.

Pictures show a magnificent double staircase leading up from a cavernous entrance hall flanked by marble pillars. The ground floor will have a huge drawing room and dining room as well as a library and guest salon.

The “upstairs, downstairs” layout will include “his and hers” master suites on the first floor, six children’s suites on the upper floors, five guest suites and 12 staff bedrooms —  11 of which will be on the lower ground floor.

A spa in the basement will host two plunge pools, a Turkish bath, a gym, sauna, beauty room and treatment room. Previous plans for a large swimming pool have been scrapped.

The basement will also have a cinema and a luggage room, and a second underground level is being dug out to be a garage accessed by car lift. The children’s floors on the second and third levels have their own games and media room and two living rooms.

A heritage report submitted to Westminster council with the planning application says the scheme would restore the building to “a single family house of the highest quality”. 

It adds: “There are few individuals who could/would be able to restore it while ensuring what is truly remarkable about it is both preserved and enhanced.”

Sheikh Hamad, 57, was premier of Qatar from 2007 to 2013, when he spearheaded an investment drive that led to its capital being dubbed “Londoha.” Trophy assets snapped up or funded at the time included Harrods, the Shard, Chelsea Barracks and Canary Wharf. 

The sheikh also backed the Candy brothers in the One Hyde Park scheme and bought a triplex apartment there.

His wealth is estimated at $1.2 billion and his other assets include a 436ft superyacht, Al Mirqab.

The Belgravia property has not been occupied as a home since 1941. It was built in 1810 to designs by Sir Robert Smirke, and the interiors were used in an Alfred Hitchcock thriller in the Fifties.

The Barclays bought it in 2010 and it has been empty since. The brothers owned it through “offshore entities” in Jersey and the British Virgin Islands as a London base for Sir David’s son Aidan.

Conversion is well under way, with a digger on the land. It is believed work on the grounds and basement will be completed by February.

Internal renovations are being carried out by a separate team and could take a further 12 months, sources said.

Property experts said a finished value of more than £300 million was “entirely plausible” as the house would be priced at at least £6,000 per square foot if it ever went on the market.

It will be one of only a handful of private central London homes bigger than 50,000 sq ft. Steel tycoon Lakshmi Mittal owns one in Kensington Palace Gardens, known as the Taj Mittal, around the same size.

The heritage report, by DIA Historic Buildings Consultancy, said the sheikh’s house would be returned to its status as a “small urban palace” enjoyed by aristocrats when “the British Empire was at its zenith and as rich as it ever was”.

News of the sale emerged as the Barclays, who are based in the Channel Islands, were reportedly searching for buyers for a number of their companies, including the Telegraph titles and the Ritz casino.

It follows disappointing financial results from some of their businesses. The brothers have repeatedly denied the Telegraph is for sale.

The sale to the sheikh was certified by a Panamanian law firm, Arias Fabrega & Fabrega Trust Co, BVI Limited. On its website it says it has “a strong offshore practice, for which it has developed ... affiliated offices in London, Luxembourg, Geneva, Hong Kong, the British Virgin Islands, Uruguay and Belize”.

Land Registry records for the building show a £34 million transaction. However, it is understood that figure relates only to the lease — the freehold is owned by the Duke of Westminster — with the true cost of the sheikh’s purchase contained within the company transfer.

https://www.homesandproperty.co.uk/luxury/property/25bedroom-london-supermansion-could-be-the-capitals-first-300-million-home-a125581.html

Rents have fallen in real terms over the last 10 years says Countrywide

So-called ‘real rents’ - those adjusted for inflation - have fallen by 2.2 per cent since October 2008.  

This means that the average cost of living has far outstripped average rents.

The claim comes from Countrywide’s high end brand Hamptons International, which monitors the rental market. 

In the last 10 years the consumer price index, which measures the average cost of goods and services, has outpaced rents.  

Over the last decade rents have actually risen 22 per cent but inflation has risen 24 per cent over the same period.

The East and London are the only regions across Great Britain where rental growth has outpaced inflation.  

In the East, real rents have risen 7.5 per cent over the last 10 years.  Meanwhile in London, real rents are up a mere 0.5 per cent since October 2008.

However, inflation has outpaced rental growth in all other regions across Great Britain, resulting in negative real rental growth.

The Midlands has seen the biggest fall in real rents, down 7.8 per cent since October 2008;  real rents in the North have fallen 6.9 per cent as inflation has outpaced rental growth. 

Aneisha Beveridge, Hamptons International’s head of research, says: “Real rents in Great Britain have been falling for the last 21 consecutive months. This comes as a result of sluggish rental growth and a post-EU referendum backdrop of rising inflation.  

“However, this could be set to change as inflation begins to fade and rental growth starts to pick up pace. Currently the East and London are the only regions where real rents have risen over the last decade.”

https://www.lettingagenttoday.co.uk/breaking-news/2018/11/rents-have-fallen-in-real-terms-over-the-last-10-years-says-countrywide

Trade body threatens council with Judicial Review over licensing plan

The Residential Landlords Association is threatening a council with a judicial review because of unresolved concerns over the authority’s selective licensing plans.

Great Yarmouth council is proposing to bring rented homes in parts of one electoral area, Nelson, into the scope of selective licensing.

However, the RLA believes one of the conditions set to be imposed as part of the scheme is unlawful and has written to the council asking for urgent clarification.

The RLA believes the local authority’s plans to make it compulsory for landlords affected to join a ‘landlord support service’ run by a third-party delivery partner are unlawful.

The association says that while some councils do legitimately use delivery partners to administer and enforce schemes – notably in Doncaster and West Lindsey – these do not require landlords to become members of the partner organisation as a pre-condition of licensing.

The RLA believes the council has no power to impose such a condition – and pointed this out in its official response to the licensing consultation earlier this year. In fact, the association believes existing rules do not even allow councils to ask whether landlords are members of such organisations.

RLA policy director David Smith says: “We are asking for immediate clarification on the council’s position. If our understanding is correct we want the council to reconsider this aspect of the scheme and come up with a lawful alternative. If it will not we will move ahead and issue a claim for a judicial review on this basis.”

Under the current plans the new licensing scheme is due to be introduced with fees set at more than £500 per property for the five-year licensing period, plus a monthly fee of £9.50 to be paid to the landlord support scheme.

The scheme is 20 per cent more expensive via the delivery partner, as VAT is payable.

https://www.lettingagenttoday.co.uk/breaking-news/2018/11/trade-body-threatens-council-with-judicial-review-over-licensing-plan

2,000 new riverside homes in former Fulham gasworks planned with food bank, youth club and allotments

This is how a derelict gas works will look after a multibillion-pound makeover of riverside land at Sands End, Fulham — but you’ll have to wait nearly 20 years to see it.

Work starts next year on 2,000 new homes in a series of towers of up to 37 storeys, with completion pencilled in for summer 2036.

The new homes come at the expense of a thriving “studio colony” which provided inexpensive workspace to some 300 small businesses including artists, makers and fashion designers. The Old Gas Works has already been closed down, forcing these businesses to relocate.

The project will join a string of high-end developments lining the river in south-west London.

Tens of thousands of homes are under construction on former industrial land including the reboot of Lots Road Power Station in and around Chelsea Creek, joining established schemes such as Chelsea Harbour and Imperial Wharf.

Most of the gas holders on the 16-acre Imperial Road site will be demolished but one, which is Grade II* listed and claimed to be the world’s oldest, will be renovated as the centrepiece of a public park.

A total of 646 of the homes, about a third, will be classified “affordable” and ring-fenced for first-time buyers and priced-out local renters.

However, many young Londoners will not be able to afford these shared-ownership homes, aimed at buyers with household incomes of up to £75,000 for one-bedroom flats or £90,000 for two-bedroom flats.

Rents will be capped at £250 a week for one-bedroom flats, and £302 a week for two-bedroom flats.

The project, by Berkeley Group, will also include a youth club, a playground, allotments and — in a stark sign of the times — a food bank.

Hammersmith & Fulham’s planning committee approved the scheme after receiving an enthusiastic report by Jo Rowlands, strategic director of growth and place.

“The proposed development will transform a redundant gas works site to a high-quality new urban quarter,” said Rowlands.

Dozens of local residents and the Fulham Society objected to the plans.

The society said the project had some “laudable elements”, but it did not like the idea of fitting 1,800 homes on to a site 10 times the size of Trafalgar Square.

The society claimed the site would be overdeveloped, with any open spaces being in shadow of some very tall buildings.

Alison Dowsett, managing director of St William, the joint venture company set up by Berkeley and National Grid, which owns the site, to develop the gasworks, said: “We anticipate that we will receive interest not only from residents already living in the borough, but also from across London. 

“The development at Fulham Gasworks will also include restoration of the heritage Grade II*-listed gas holder, which is the oldest in the world, as well as two Grade II-listed buildings and war memorials. Almost half of the site will be publicly accessible open space, with new pedestrian and vehicular access routes and a substantial new park, complementing the existing green space in the area. Work is expected to start on site in spring 2019.”

https://www.homesandproperty.co.uk/property-news/new-riverside-homes-fulham-gasworks-sands-end-food-bank-a125066.html